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Price discrimination in mobile gacha games: A comprehensive study of the scarcity–pricing, gachaing–user profiling, and recharging–profiting models

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  • Ran Cao
  • Wenxiang Zhang
  • Fangyuan Sun

Abstract

Price discrimination (PD) in mobile gacha games differs from that in e‐commerce platforms due to its reliance on the concealed “probability” mechanism, which appears transparent but is actually controlled, making it harder to detect and regulate by society. To confirm the existence of PD in mobile gacha games, a comprehensive analysis of its operational modes was conducted through extensive participatory observation and in‐depth interviews with over 30 domestic gamers, game developers, and data analysis website founders. The study revealed that, contrary to academic definitions, PD does indeed occur in mobile gacha games, characterized by three interconnected models: the scarcity–pricing model, gachaing–user profiling model, and recharging–profiting model. By examining the interrelated models that comprise the PD process, concentrating on China as a special context, and offering insightful information on the effects of PD on consumer behavior and economic platforms, this study makes a noteworthy and novel contribution to the understanding of PD within the realm of mobile gacha games. The research examines the influence of PD on consumer behavior and economic decision‐making processes. Furthermore, the research discusses the difficulties of controlling PD in mobile gacha games, particularly due to the opacity of the “probability” mechanism. In conclusion, recommendations aimed at addressing the issue of PD within the realm of mobile gacha gaming in China are presented, drawing upon Lawrence Lessig's framework on “Four modalities of restraining behavior in cyberspace.”

Suggested Citation

  • Ran Cao & Wenxiang Zhang & Fangyuan Sun, 2024. "Price discrimination in mobile gacha games: A comprehensive study of the scarcity–pricing, gachaing–user profiling, and recharging–profiting models," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(6), pages 3716-3733, September.
    • Handle: RePEc:wly:mgtdec:v:45:y:2024:i:6:p:3716-3733
    DOI: 10.1002/mde.4192
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    References listed on IDEAS

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    1. Leibbrandt, Andreas, 2020. "Behavioral constraints on price discrimination: Experimental evidence on pricing and customer antagonism," European Economic Review, Elsevier, vol. 121(C).
    2. Kalyanaram, Gurumurthy & Winer, Russell S., 2022. "Behavioral response to price: Data-based insights and future research for retailing," Journal of Retailing, Elsevier, vol. 98(1), pages 46-70.
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